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Growth Strategy8 min read

Growth Has Stalled. Is It a Sales Problem—or a Market Problem?

When growth slows, weak sales may be the symptom—not the cause. Diagnose whether the real constraint is the market, offer, commercial system, or execution.

Jeff Lortz

Jeff Lortz

Founder & Operating Partner

When growth slows, the sales team is usually the first place leadership looks.

A sound business growth strategy begins by identifying where growth is actually constrained before leadership commits more money, people, or attention to a preferred solution.

Pipeline is reviewed more frequently. Activity targets increase. Forecasts receive greater scrutiny. A new salesperson, sales manager, marketing firm, or lead-generation program may be added.

Sometimes that is exactly what the business needs.

But sales is also where problems created elsewhere in the business become visible. Weak demand, an undifferentiated offering, unclear customer priorities, poor pricing, inconsistent delivery, and slow decision-making can all appear in the forecast as a sales problem.

Pushing harder on the sales organization before identifying the underlying constraint can create more activity without producing better growth.

I have faced versions of this problem before. They are rarely simple. When a business is missing its plan, leaders understandably want action. The harder—and more valuable—work is determining which action addresses the real problem.

Growth belongs to the leadership team

Scott K. Edinger opens The Growth Leader with a direct statement:

“Growth is a leadership issue, not a sales issue.” — Scott K. Edinger

This does not diminish the importance of sales. It puts sales in its proper context.

Sustainable growth requires a connected set of leadership choices:

  • Which markets are attractive?
  • Which customers are the best fit?
  • What problem is the company particularly qualified to solve?
  • Why should a customer choose this business?
  • How will the company reach and serve those customers?
  • What capabilities and investments will the strategy require?
  • What evidence will cause leadership to stay the course or change direction?

A sales team can execute those choices, contribute evidence, and help refine them. It cannot make them alone.

When the answers remain unclear, salespeople fill the gaps individually. They pursue different customers, describe the offering differently, discount for different reasons, and make commitments the operating organization may not be prepared to deliver.

The resulting inconsistency is then interpreted as weak sales execution.

Four growth problems can look like one

Four concentric growth constraints—market, offer, commercial system and execution—surround sustainable growth.
Missed sales targets can originate at any layer. Diagnose the constraint before prescribing the solution.

These problems require different responses.

A market problem may require choosing a different segment or narrowing the company’s focus.

An offer problem may require changing the service, product, pricing, or value proposition.

A commercial-system problem may require stronger positioning, marketing, qualification, sales management, or channels.

An execution problem may require clearer ownership, better operating discipline, new capabilities, or more consistent delivery.

Adding sales capacity only addresses part of the third category. If the true constraint sits elsewhere, another salesperson may simply discover the same problem at greater cost.

Listen for evidence, not encouragement

Leadership teams often discuss growth through stories:

  • A large prospect expressed interest.
  • Customers say they would buy an additional service.
  • A competitor appears busy.
  • A salesperson believes a new territory has potential.
  • One successful project suggests an adjacent market.

These observations can be useful. They are not yet a growth strategy.

In The Customer-Base Audit, Peter Fader, Bruce Hardie, and Michael Ross ask leaders to examine the actual buying behavior underneath revenue.

“But how much time have you spent reflecting on the fact that these revenues are generated by actual customers?” — Peter Fader, Bruce Hardie and Michael Ross

Averages can hide important changes. Revenue may appear stable while the company loses its best customers and replaces them with smaller, less profitable ones. New-customer acquisition may rise while repeat business deteriorates. One growing account may conceal weakness across the rest of the customer base.

Useful evidence includes:

  • Revenue and margin by customer segment
  • Customer concentration and retention
  • Win and loss patterns
  • Sales-cycle length
  • Discount frequency
  • Reasons customers buy, delay, or decline
  • Which offerings lead to repeat or expanded business
  • Differences between the most and least valuable customers
  • Delivery performance and customer outcomes

The purpose is not to create a perfect analytical model. It is to replace broad assumptions with enough evidence to make a better choice.

Product-Market Fit Is Not Just a Startup Question

Product-market fit is often treated as startup vocabulary, but established businesses face the same question whenever they enter a market, add a service line, or reposition an offering.

A go-to-market strategy cannot compensate for weak fit. It can only reveal the mismatch faster—or amplify an offer customers already value.

Business Growth Strategy Is a Set of Connected Choices

Industrial Metal Fabrication, a woman-owned and family-operated steel fabrication business in Kansas, faced declining revenue as market demand shifted, competition intensified, and family ownership was transitioning.

The owner saw opportunities to diversify the company’s product line, add more repeatable production work, and invest in modern fabrication equipment.

Each idea had merit. Together, however, they represented significant commitments of capital, attention, and organizational capacity.

The company developed a strategic roadmap that assessed its current position, identified possible scenarios, clarified priorities, connected capability investments to growth opportunities, and established an implementation plan.

The work identified $3 million in new sales opportunities and affected ten new or retained jobs.

The lesson is not that every business needs an elaborate strategic-planning exercise. It is that growth initiatives must fit together.

A new machine without a defined market is capacity, not strategy. A new service line without a clear customer problem is additional complexity. A growth target without choices about customers, value, and capabilities is an aspiration.

Choose where to play—and where not to

Privately held companies often grow through responsiveness. An owner sees an opportunity, solves a customer problem, and earns the next piece of business.

That instinct is a strength. It can also produce a collection of customers, services, and exceptions that no longer form a coherent growth model.

Choosing where to play requires deciding:

  • Which customers the company is best positioned to serve
  • Which problems it wants to own
  • Which offerings deserve investment
  • Which channels can reach those customers effectively
  • Which work the company will no longer pursue

The final decision is often the hardest.

Saying no to revenue feels imprudent when growth is under pressure. But accepting every available opportunity can spread the organization across too many markets, dilute its message, and consume the capacity needed to build something differentiated.

Focus is not the absence of ambition. It is the concentration of resources behind a growth thesis.

Customer knowledge still has to become a commercial system

ABTech offers a relatable owner-operator example.

Founder Ken Abbott started the New Hampshire air-bearing manufacturer in 1998 and grew it from a one-person operation into a 29-employee business serving aerospace, optics, and semiconductor customers.

Abbott understood the engineering and knew his customers. But previous sales and marketing hires—and even outside marketing assistance—had taken the company in directions that did not feel right.

His diagnosis was candid:

“I know my business, I know my customers, I know what they are looking for. I just needed help getting our message out there.” — Ken Abbott, President, ABTech

ABTech worked to distinguish marketing from selling, clarify its message, develop target markets, and strengthen lead generation.

The company subsequently reported $700,000 in increased or retained sales, six jobs created or retained, $50,000 in new products, and $50,000 in new investment.

Knowing the customer was essential. Translating that knowledge into a repeatable commercial approach made it useful to the organization.

Turn the growth thesis into a learning system

A six-stage evidence loop: choose, position, sell, deliver, measure and learn.
Growth improves when customer evidence travels through the entire business and back into leadership decisions.

This is where many growth efforts break down.

Marketing measures attention. Sales measures pipeline. Operations measures delivery. Finance measures revenue and margin. Each function sees a different part of the system, but no one assembles the evidence into a shared view.

A leadership team should be able to answer:

  • What are we learning about the customers we chose?
  • Is the offer producing the response we expected?
  • Where are qualified opportunities being lost?
  • Are we delivering the outcome promised during the sale?
  • Are the resulting customers attractive to retain and expand?
  • Which assumption should we test next?

Growth becomes less speculative when these questions are part of the operating rhythm.

The discipline becomes repeatable when it is embedded in the company’s business operating system, rather than treated as an occasional strategy exercise.

It also depends on leadership team effectiveness: market evidence has to change shared priorities and operating choices across the company.

Start with the constraint

When growth stalls, resist the urge to begin with a preferred solution.

Do not start by assuming the company needs more leads, another salesperson, a new website, a lower price, another service line, or a larger capital investment.

Begin with four questions:

  1. Market: Are we pursuing customers with a meaningful need and the willingness to act?
  2. Offer: Is our solution sufficiently valuable and differentiated?
  3. Commercial system: Can we consistently reach, qualify, and convert the right opportunities?
  4. Execution: Can we deliver the promise profitably and learn from the result?

The answer may still be sales execution. If it is, leadership can address it with greater confidence.

But if the constraint is the market, the offering, or the company’s ability to deliver, pushing the sales team harder will not solve it.

The goal is not more activity. It is a clearer growth thesis, supported by evidence and carried through the business as a shared leadership responsibility.

Sources & further reading

  1. The Growth Leader: Strategies to Drive the Top and Bottom LinesScott K. Edinger · Fast Company Press
  2. The Customer-Base Audit: The First Step on the Journey to Customer CentricityPeter Fader, Bruce G. S. Hardie and Michael Ross · Wharton School Press
  3. A Strategic Roadmap for Manufacturing ExcellenceNIST Manufacturing Extension Partnership · Industrial Metal Fabrication
  4. The Marketing Strategies Collaborative Program Puts ABTech on a Clearer PathNIST Manufacturing Extension Partnership · ABTech
Jeff Lortz

Written by Jeff Lortz

Jeff is a former PE-backed CEO, senior operating executive and US Navy Surface Warfare Officer. He works alongside owners and leadership teams at pivotal moments in the life of a business.

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